Kemmons Wilson Hospitality Partners and Ascendant Capital Partners Complete Acquisition of Sotherly Hotels

The joint venture expands the companies' hospitality portfolios in the Southeastern U.S.

Published on Feb. 12, 2026

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Kemmons Wilson Hospitality Partners (KWHP), a hospitality investment firm, and Ascendant Capital Partners, a real estate investment platform, have completed the acquisition of Sotherly Hotels Inc. through their joint venture, KW Kingfisher LLC. The $2.25 per share all-cash deal was approved by Sotherly's shareholders and board of directors. Schulte Hospitality Group, a leading hotel management company, will assume operations of Sotherly's 10 full-service hotels and one condo-hotel management agreement.

Why it matters

The acquisition expands KWHP's and Ascendant's hospitality portfolios in key Southeastern U.S. markets, leveraging their combined expertise and resources to enhance the guest experience at the Sotherly properties. It also marks a significant milestone in the ongoing execution of Ascendant's hospitality investment strategy focused on high-quality assets in diverse submarkets.

The details

The joint venture acquired all outstanding shares of Sotherly common stock for $2.25 per share in cash. Schulte Hospitality Group, a Louisville, Kentucky-based hotel management and development company, will assume operations of Sotherly's 10 full-service hotels and its single condo-hotel management agreement. Affiliates of Apollo and Ascendant provided debt financing commitments to the joint venture for the transaction.

  • The definitive merger agreement was approved by Sotherly stockholders on January 22, 2026.
  • The acquisition was completed on February 12, 2026.

The players

Kemmons Wilson Hospitality Partners

A hospitality-focused investment management firm headquartered in Memphis, Tennessee, established by the founders of the iconic Holiday Inn brand.

Ascendant Capital Partners

A vertically integrated real estate investment firm headquartered in Los Angeles with a regional office in Dallas, focused on the hospitality and residential sectors.

KW Kingfisher LLC

The joint venture between Kemmons Wilson Hospitality Partners and Ascendant Capital Partners that acquired Sotherly Hotels.

Sotherly Hotels Inc.

A self-managed and self-administered lodging real estate investment trust (REIT) that owned a portfolio of 10 full-service, primarily upscale and upper-upscale hotels located in the mid-Atlantic and southern United States.

Schulte Hospitality Group

A premier hospitality management and development company, overseeing a global portfolio of more than 250 hotels, restaurants, and other related hospitality ventures.

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What they’re saying

“Over two decades, the Sotherly team has built an attractive portfolio of assets in durable Southeastern travel destinations. Guided by our ethos that 'Everybody Deserves Hospitality', we have assembled a deeply experienced and talented team with Ascendant and Schulte to build on the portfolio's compelling foundation. The Sotherly acquisition amplifies KWHP's deep history of investing in differentiated hospitality, and we look forward to exercising our combined resources and expertise to make strategic enhancements that improve overall guest experience.”

— Webb Wilson, Chief Investment Officer, Kemmons Wilson Hospitality Partners (GlobeNewswire)

“This acquisition is a significant step forward in the ongoing execution of our hospitality strategy, which is focused squarely on high-quality assets in diverse submarkets with attractive underlying dynamics. Our team's deep hospitality experience and close partnership with KWHP have allowed us to capitalize on this compelling opportunity, and the success of this deal is a testament to that collective effort. We look forward to working with our partners to continue delivering exceptional experiences for our guests.”

— Alex Halpern, Chief Investment Officer, Ascendant Capital Partners (GlobeNewswire)

“For more than 25 years, SHG has combined the latest advanced operations systems with a relentless dedication to operational excellence. We are very excited to deliver our suite of services and industry leading practices to this portfolio and ensure guests can enjoy these properties for many years to come. We are confident that our continued partnership with KWHP and Ascendant will enhance the experience of guests and employees, and drive growth for these upscale assets.”

— Darryl Schulte, Chairman and CEO, Schulte Hospitality Group (GlobeNewswire)

The takeaway

This acquisition demonstrates the continued strength of the hospitality industry in the Southeastern U.S., as well as the ability of experienced investment firms like KWHP and Ascendant to identify and capitalize on strategic opportunities to expand their portfolios and enhance the guest experience at high-quality hotel properties.